Coinbase (COIN): Barclays discusses media reports on potential offshore derivatives exchange launch

Barclays analyst Benjamin Budish reflected on Coinbase Global Inc. (NASDAQ: COIN) after media reports suggest the company is about to launch an offshore derivatives exchange.

"Given our expectation that a futures offering would be more lucrative on a per-trade basis vs. the spot market, we would assume that if Coinbase were to launch such an exchange, the revenue uplift could be quite meaningful, despite the company having only a small portion of revenues coming from overseas. For context, Coinbase’s current overseas offering is quite similar to that of the U.S. (e.g., the spot trading market). In F22, the company generated ~16% of revenues from outside the U.S., down from 19% in F21, and 24% in F20. We believe this is at least partly due to increasing interest income on USDC (all reported as domestic revenues, we believe) and customer cash, given the higher reference rates in the US vs. UK and EU, where the majority of Coinbase’s international customers currently reside."

For an analyst ratings summary and ratings history on Coinbase Global Inc. click here. For more ratings news on Coinbase Global Inc. click here.

Shares of Coinbase Global Inc. closed at $64.44 yesterday.

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